#1
What is the purpose of the price-to-earnings (P/E) ratio?
To measure a company's ability to generate profit
To measure a company's debt levels
To measure a company's liquidity
To measure a company's asset turnover
#2
Which financial ratio measures a company's efficiency in managing its assets to generate sales?
Debt-to-Equity Ratio
Asset Turnover Ratio
Price-to-Book Ratio
Return on Equity
#3
Which of the following is a measure of a company's ability to cover its short-term liabilities with its most liquid assets?
Inventory Turnover Ratio
Current Ratio
Return on Assets
Earnings per Share
#4
Which financial ratio measures a company's ability to meet its short-term obligations with its most liquid assets?
Inventory Turnover Ratio
Quick Ratio
Debt-to-Equity Ratio
Return on Equity
#5
What does the term 'EPS' stand for in financial analysis?
Earnings Per Share
Earnings to Price Ratio
Earnings per Stock
Earnings Power Spread
#6
Which of the following is a measure of a company's financial leverage?
Return on Assets (ROA)
Current Ratio
Debt-to-Equity Ratio
Inventory Turnover Ratio
#7
Which of the following is not a liquidity ratio?
Current Ratio
Quick Ratio
Debt-to-Equity Ratio
Cash Ratio
#8
What does the debt-to-equity ratio indicate about a company?
Its ability to pay short-term debt
The proportion of debt used to finance its operations relative to shareholders' equity
The efficiency of its asset management
Its ability to generate profit
#9
Which valuation method estimates the intrinsic value of a stock by discounting its future cash flows?
Price-Earnings Ratio
Dividend Discount Model
Price-to-Book Ratio
Earnings Yield
#10
What does the term 'EBIT' stand for in financial analysis?
Earnings Before Income Tax
Earnings Before Interest and Taxes
Earnings Before Interest and Deductions
Earnings Before Interest and Depreciation
#11
Which financial ratio measures a company's efficiency in managing its inventory?
Debt-to-Equity Ratio
Return on Assets
Inventory Turnover Ratio
Return on Equity
#12
What is the purpose of the price-to-book (P/B) ratio?
To measure a company's ability to generate profit
To measure a company's debt levels
To measure a company's liquidity
To measure a company's valuation relative to its assets
#13
How does the DuPont analysis break down a company's return on equity (ROE)?
Into three components: profit margin, asset turnover, and financial leverage
Into two components: profit margin and asset turnover
Into three components: liquidity, solvency, and profitability
Into two components: liquidity and solvency
#14
Which financial ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes?
Interest Coverage Ratio
Return on Investment
Profit Margin
Debt-to-Equity Ratio
#15
In asset valuation, what does the term 'DCF' refer to?
Debt-Coverage Factor
Discounted Cash Flow
Depreciation Cash Flow
Debt to Cash Flow
#16
Which financial ratio indicates a company's ability to generate profit from its operations before deducting interest and taxes?
Operating Margin
Net Profit Margin
Gross Profit Margin
Earnings Before Interest and Taxes (EBIT) Margin
#17
Which financial ratio measures a company's profitability by comparing its net income to its shareholders' equity?
Gross Profit Margin
Operating Margin
Net Profit Margin
Return on Equity (ROE)
#18
Which financial ratio measures a company's ability to pay off its short-term debt obligations with its cash and cash equivalents?
Quick Ratio
Debt-to-Equity Ratio
Current Ratio
Cash Ratio